What obligation does an Angry Chickz franchisee have regarding their employees' access to confidential information?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to any procedures prescribed by Company, Franchisee shall implement reasonable procedures prevent unauthorized use and disclosure of the Confidential Information. If Franchisee has any reason to believe that any employee or Restricted Person has improperly used or disclosed the Confidential Information, Franchisee shall promptly notify Company and shall cooperate with Company to protect Company against infringement or other unlawful use, including, the prosecution of any lawsuits if, in the judgment of Company, such action is necessary or advisable.
12.2.2 "Confidential Information" shall not include information which: (a) has entered the public domain or was known to Franchisee prior to Company's disclosure of such information to Franchisee, other than by the breach of an obligation of confidentiality owed (by anyone) to Company or its Affiliates; (b) becomes known to the Restricted Persons from a source other than Company or its Affiliates and other than by the breach of an obligation of confidentiality owed (by anyone) to Company or its Affiliates; or (c) was independently developed by Franchisee without the use or benefit of any of Company's Confidential Information. The burden of proving the applicability of the foregoing will reside with Franchisee.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD page 38)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, franchisees have a responsibility to protect the franchisor's confidential information and prevent its unauthorized use or disclosure by their employees. Franchisees must implement reasonable procedures to prevent unauthorized use and disclosure of confidential information. This includes ensuring that employees only use confidential information in connection with the franchised business and that they maintain its absolute confidentiality both during and after their employment. Employees are also prohibited from making unauthorized copies of confidential materials such as manuals, bulletins, and other communications. These obligations extend to anyone considered a 'Restricted Person'.
If a franchisee suspects that an employee or any Restricted Person has improperly used or disclosed confidential information, they must promptly notify Angry Chickz and cooperate in efforts to protect the company against infringement or unlawful use. This may include participating in lawsuits if Angry Chickz deems such action necessary. The definition of 'Confidential Information' does not include information that is already public knowledge, was known to the franchisee prior to disclosure by Angry Chickz (without breach of confidentiality), becomes known to the franchisee from another source without breach of confidentiality, or was independently developed by the franchisee without using Angry Chickz's confidential information. The franchisee bears the burden of proving these exceptions.
This requirement ensures that Angry Chickz's proprietary information, which is crucial to the brand's success and competitive advantage, remains protected. By mandating that franchisees take proactive measures to safeguard this information, Angry Chickz aims to maintain consistency and quality across all franchise locations. Prospective franchisees should carefully review the definition of 'Confidential Information' in the franchise agreement and understand the specific procedures they will need to implement to comply with this obligation. Failure to adequately protect confidential information could result in legal action and damage to the Angry Chickz brand.